Beware of bankruptcy – bank (2)

Prevention is better than cure.
Instead of relying on getting Deposit Insurance after bank went bankruptcy,
it will be better if we can detect when certain banks are going "bad".

Found this "Examiner’s guide to Problem Bank identification, rehabilitation and resolution" from
Comptroller of the Currency Administrator of National Banks, US:
PDF file

The part "Problem Bank Identification" and "Accounting Issues in Problem Banks" are particular useful.

Some of the red flags mentioned (the "guide" teaches on details of these red flags):
1.rapid growth/aggressive growth strategies
2. deterioration in economy
3. management/oversight deficiencies
4. inappropriate limits on OCC access to bank staff and documents (applies to US, in simple term, not letting enough "regulator"’s access to bank staff and documents)
5.risk management deficiencies
6.significant off-balance-sheet exposure
7. asset quality deterioration
8.significant ALLL (Allowance for Loan and Lease Losses) and asset valuation adjustment issues
9. strained liquidity
10.insider abuse and fraud
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